An appraiser looks in the MLS and public records and finds a few comparable properties.

The comparable sales I also found are in that general area too.

I personally like ROI over comparing cap rates because ROI factors my financing into the equation, and my financing options might be different on different properties.

* How does the stock market compare to real estate?

Plus books are cheap compared to a lot of these seminars and clinics...

Purchasing multi-family units are excellent investment choices (in my opinion , the best right now), particularly new constuction as they come with builder warranties (little or no maintenance costs for 1-2 years), they will have greater future appreciation (compared with older units), and they will be easier to sell when the market turns to an upswing.As others have mentioned, due your homework (due diligence) and most importantly, run the numbers to make sure the deal makes sense.

Well, I guess not that complex compared to buying and renting out houses, but still not easy.

See who other agents in your area and using and compare them would probably be the best way to go.

Okay since I got into the REI game and realized how much money there is out there I am constantly on the computer comparing deals.

In this case, the lender should obtain some comparables from a real estate agent/ broker to estimate an approximate as-is value of the property.